Contracts

What makes a contract enforceable

To be enforceable, a contract must meet these six requirements:

(1) The parties to the contract must be legally competent.

(2) The contract must be for something legal.

(3) There must be something of value, an inducement or consideration.

(4) It must be mutually binding on the parties.

(5) It must be a mutual agreement between the parties.

(6) It must be in writing.

What is an express contract

An express contract is one whose terms are specifically stated and agreed upon, usually in writing. For example, a written contract between the seller and buyer of a home would be an express contract.

What is an implied contract

An implied contract is one that is implied from the facts and circumstances surrounding the activities of the people involved. For example, there is an implied contract when you go to your dentist. He is expected to do what is needed to your teeth and you are expected to pay him for his services, even in the absence of any written agreement between you.

When is a contract formed

A contract is formed when an offer is accepted.

What comprises a valid offer

An offer consists of an expression of your intent to enter a contract, definite and certain terms, and your communication of the offer to the other person. An offer of a prize in a contest may become a binding contract for a successful contestant who complies with the terms of the offer.

Contracts